China issued a warning to the United States on Monday, September 23, urging it not to engage in “discriminatory actions” against its companies. This follows reports that Washington is considering a ban on the sale of vehicles that utilise Chinese and Russian technology.
Foreign ministry spokesman Lin Jian addressed these developments, emphasising that China calls on “the US to respect market principles and provide an open, fair, transparent, and non-discriminatory business environment for Chinese enterprises.” He further stated, “China opposes the US’s broadening of the concept of national security and the discriminatory actions taken against Chinese companies and products.” Lin affirmed, “China will resolutely safeguard its legitimate rights and interests.”
Recent media reports, including those from Bloomberg, indicated that the United States is contemplating new regulations to prohibit hardware and software produced in China from being used in its vehicles. If implemented, these rules would represent a significant escalation in the ongoing trade conflict between the two nations.
This latest tension comes in the wake of the steep tariff hikes introduced by Washington in May, targeting Chinese imports valued at US$18 billion. These tariffs have affected strategic sectors, including electric vehicles (EVs), batteries, critical minerals, and medical products. Notably, the tariff rate on EVs is expected to rise to 100 per cent this year, while the rate for semiconductors will increase from 25 per cent to 50 per cent by next year.
These measures were formalised earlier this month, ahead of the upcoming presidential election in November, as both Democrats and Republicans aim to project a robust stance against China amid intensifying competition. The tariff increases follow a review of the levies imposed under former president Donald Trump, which affected approximately US$300 billion in goods from China.
Additionally, the US Trade Representative’s office has confirmed that a 50 per cent duty on semiconductors will commence in 2025, marking a substantial increase from previous rates. President Joe Biden has accused Beijing of “cheating” rather than engaging in fair trade practices.
Analysts note that “trade wars are a lose-lose game,” suggesting that China may consider milder responses as Western nations continue to impose tariffs.
Source: AFP
